IFFCO to buy 2 lakh tonne ammonia produced using renewable energy from ACME

New Delhi: The Cooperative fertiliser major IFFCO will buy from ACME Cleantech Solutions about 2 lakh tonne of ammonia manufactured via renewable energy. In a statement on Friday, IFFCO said it has signed a memorandum of understanding (MoU) with renewable energy company ACME for supply of commercial-grade ammonia.

PSU Watch is now on Whatsapp Channels. Click here to join

Ammonia will be produced at ACME’s plant in Gopalpur, Odisha using renewable energy and supply the same to Indian Farmers Fertiliser Cooperative Limited (IFFCO), it said. Ammonia is an important base material for fertilisers.

"IFFCO signed an MoU with ACME Cleantech Solutions for the purchase and supply of about 2,00,000 tonne ammonia made through renewable energy route," IFFCO said.

The cooperative said it will use the ammonia supplied by ACME for manufacturing complex fertilisers at Paradeep unit in Odisha and Kandla unit in Gujarat.

It also mentioned that ACME would retain a green credit and trade in the form of ITMO (Internationally Transferred Mitigation Outcomes) with other countries under Article 6 of the Paris Agreement.

The initiative will lead to significant decarbonisation of the economy, reduce dependence on fossil fuel imports, and enable India to assume technology and market leadership in green hydrogen, it added.

IFFCO Director Birinder Singh said, "This is a step forward in our ongoing efforts to innovate in the field of fertilizer production and supply."

Hiren Mehta, Chief Commercial Officer at ACME, said,"This partnership with IFFCO represents a significant leap forward in our mission to promote sustainable energy solutions."

The MoU will pave the way to sign bilateral agreements between India and other countries under Article 6 of the Paris Agreement, he added. Under Article 6 of the Paris Agreement, countries are able to transfer carbon credits earned from the reduction of greenhouse gas emissions to help one or more countries meet their climate targets.

(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)